High-cost Credit

Baroness Primarolo Excerpts

Thursday 5th September 2013 Commons Chamber

[Justin Tomlinson (North Swindon) (Con)]

I welcome much of what is being said, but I have a word of caution. An unauthorised overdraft in a mainstream bank is equivalent to 80,000% APR. We may not want to signpost people towards that.

[Madam Deputy Speaker (Dawn Primarolo)]

Order. Before the hon. Member for Islwyn (Chris Evans) concludes his remarks, I gently remind him that the recommended period for opening a debate is 10 to 15 minutes and he has now had 19 minutes. I appreciate that he has taken interventions.

[Chris Evans]

I apologise Madam Deputy Speaker. I am coming to an end, but I will just deal with the hon. Gentleman’s point. The significant word is “unauthorised”. I know that the hon. Gentleman has done a lot of good work on financial education, which is the way forward. An unauthorised overdraft is a failure to manage the account properly, so we need to teach people how to do that. I think that he would agree with that.

Credit unions rightly receive support from both sides of the House, but to flourish they need the support and help of Government. If that means regulating the high-cost credit industry while at the same time restricting its advertising budgets, as we have done in other industries, so be it.

Once again, I thank the Backbench Business Committee for granting me time for this debate. I know how important it is to Members from both sides of the House and I look forward to hearing colleagues’ contributions.

[Several hon. Members]

rose—

[Madam Deputy Speaker]

Order. I inform Members that there will be an eight-minute time limit starting immediately with Back-Bench contributions.